What is an internal auditor's responsibility regarding ethical standards?

An internal auditor's responsibility regarding ethical standards primarily revolves around upholding integrity and objectivity. This is fundamental to the auditing profession and ensures that auditors conduct their work with honesty, impartiality, and credibility. Upholding these ethical standards is essential because it builds trust with stakeholders, such as management, the board of directors, and members of the credit union.

Integrity involves being straightforward and honest while conducting audits, while objectivity means that auditors must free themselves from any influences that could affect their judgment. This combination of integrity and objectivity allows internal auditors to provide accurate assessments and reports that genuinely reflect the state of the credit union's operations and finances.

Other responsibilities like minimizing audit costs, confirming stakeholder preferences, or maximizing audit effectiveness could lead to compromises in integrity and objectivity and do not align with the foundational ethical principles that govern the internal auditing profession. Therefore, the emphasis on upholding integrity and objectivity is crucial for maintaining the overall quality and reliability of the internal audit function.